macrocephalopod

trade on it bribe prof with alpha

the real ones recognize that the sharpe of life comes from reducing the stdev via recurring guaranteed revenue be it a newsletter or management fees vs. dirty high variance 'actual trading' (not counting hft ) so I think not trading it teaches the actionable life lesson here

The greatest trick Bridgewater ever pulled was convincing a subset of its clients to move into management fee only accounts.

plus clients end up with less smooth returns from losing the benefit of HWM rules and accrual reversal of perf fee in down months

This is true but I imagine the main thing they are bothered about is paying 3.5% management fee on a fund that is flat over the last six years

Can't entirely lay the blame with Bridgewater though! In the few examples where we have offered clients a choice between a fixed management fee or management + performance they have tended to favor the fixed fee